EVX - 4 Reasons To Buy Arq Stock

2024-05-30 15:56:01 ET

Summary

• Arq, Inc. which specializes in the manufacture of environmental solutions has already generated impressive returns of 137% this year, outperforming the market.
• The company's granular activated carbon (GAC) portfolio is expected to benefit from new drinking water regulations and a potential supply deficit.
• Arq's gross margin progress is sustainable, driven by pricing effects with its PAC business, and the potential price-elastic nature of its GAC portfolio.
• ARQ offers solid topline growth outlook at a compelling EV/sales of just 1.5x.
• We appreciate the bullish developments on the charts, backed by growing institutional support, and the prospect for further rotational interest from investors focused on the environmental universe.

Introduction

This year, the stock of the small-cap environmental technology company, Arq, Inc. ( ARQ ) which specializes in activated carbon, has been on fire. On a YTD basis, the stock has already generated astounding returns of 137%, even as the prime benchmark has only generated returns within the low double-digit threshold....

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